Back in May, I mentioned that the Department for Business, Energy and Industrial Strategy ("BEIS") had "called-in" its first two acquisitions under the National Security and Investment Act 2021 (the "Act"). Fast forward two months and BEIS has issued its inaugural blocking order under the Act in relation to a completely different transaction. The blocked deal, if it had gone ahead, would have seen the University of Manchester licensing vision sensing technology for robots to the Chinese company, Beijing Infinite Vision Technology ("BIVT").

The Secretary of State for BEIS stated in the order that:

"i. the technology set out in the licence agreement has dual-use applications; 

ii. there is potential that the technology could be used to build defence or technological capabilities which may present national security risk to the United Kingdom; and 

iii. those risks would arise on the transfer of the intellectual property to [BIVT]." 

Interestingly, the transaction did not fall under the Act's mandatory notification obligations, but was notified to BEIS on a voluntary basis by the University of Manchester. 

It is becoming increasingly obvious that the government means business when it comes to the Act. As such, this is a piece of legislation which should always be considered, by both advisors and principals, at the start of any acquisition process.